Ford F-150 Supplier Snag Hits Q3 Wholesale Numbers, CEO Says
F is trading near its 52-week low of $11.11 (11% above the low) on light trading volume (0.1× avg).
Summary
Ford CEO Jim Farley disclosed that a supplier issue disrupted F-150 pickup production in recent days, impacting third-quarter wholesale volumes. The problem has been resolved, but the lost output will weigh on Q3 sales. This follows a Q2 where Ford raised full-year adjusted EBIT guidance to $10–$11 billion, so the disruption could pressure near-term results. The F-150 is Ford's highest-volume and most profitable vehicle, making any production hiccup material. Investors will look for quantification of the impact in the upcoming Q3 earnings report.
Updates
· Dow Jones Newswires — Ford's overall U.S. sales through August were down 10%, and F-Series truck sales were down 11%.
· Dow Jones Newswires — The supplier issue halted F-150 production at a Michigan plant for about one week; Ford expects fourth-quarter production unaffected.
- Ford sent a supply-chain team to quickly solve the F-150 production problem.
- The latest F-150 supplier issue involved a shortage of components.
At the time of this announcement, F was trading at $12.29 on NYSE in the Manufacturing sector, with a market capitalization of approximately $49B. The 52-week trading range was $11.11 to $17.78. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.